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State Energy Efficiency Policy Database

District of Columbia

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Summary

The District of Columbia has had customer energy efficiency programs funded by a systems benefits charge and administered by the District of Columbia Energy Office since a 2005 decision by the DC Public Service Commission. This fund, the Reliable Energy Trust Fund, was created as a result of the District's 1999 Retail Electric Competition and Consumer Protection Act. The fund has supported a variety of programs and services since it was established in 2005. Initial funding in 2006 was about $8 million.

In 2008, the District of Columbia enacted the Clean and Affordable Energy Act, which eliminated the Reliable Energy Trust Fund and replaced it with the Sustainable Energy Trust Fund. This fund is administered by DC's third-party "Sustainable Energy Utility" (DCSEU) with an initial budget of $7.5 million in 2009. The District Department of the Environment estimated the total electric energy efficiency budget for 2010 was approximately $9.4 million. 

Responsibility for the implementation of energy efficiency programs was transferred from PEPCO to DCSEU in 2011.  The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables on the left. Efficiency program spending in 2012 is estimated to be $15 million.

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November 8, 2013


Customer Energy Efficiency Programs

The District of Columbia has had customer energy efficiency programs funded by a systems benefits charge since a 2005 decision by the Public Service Commission of the District of Columbia. The Reliable Energy Trust Fund was created as a result of authorization included in the District's 1999 "Retail Electric Competition and Consumer Protection Act." The fund had supported a variety of programs and services since 2005. Program services included energy awareness programs, rebates for efficient appliances, and low-income energy assistance.

In December 2008, the DC Public Service Commission approved five demand-side management programs. These programs were initially implemented by Potomac Electric Power Company (PEPCO), the local investor-owned utility.

In 2008, the District of Columbia enacted the Clean and Affordable Energy Act, which effectively eliminated the Reliable Energy Trust Fund and replaced it with a new fund, the Sustainable Energy Trust Fund. This fund is administered by the District Department of the Environment, and it funds DC's third-party "Sustainable Energy Utility" (DCSEU). Responsibility for the implementation of energy efficiency programs was transferred from PEPCO to DCSEU in 2011.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables on the left.

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November 8, 2013


Energy Efficiency Resource Standards

There is currently no EERS in place.

For more information on Energy Efficiency Resource Standards, click here.


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August 9, 2013


Alternative Business Models

In September 2009, Potomac Electric Power Company (PEPCO) received approval for its Bill Stabilization Adjustment which would implement electric revenue decoupling. (Case No. 1053, Order No. 15556)

In December 2009 Washington Gas Light filed a request for decoupling, but the application was denied. (Case No. 1079)


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August 9, 2013


Reward Structures for Successful Energy Efficiency Programs

The DC Council adopted the Clean and Affordable Energy Act (CAEA) of 2008 effective October 1, 2008 which authorizes the Energy Office to contract with a “Sustainable Energy Utility” (SEU) for the implementation of energy efficiency programs.  Section 202 of the CAEA, codified at section 8-1774.02, specifies that the contract between the District Department of the Environment and the SEU “shall be performance based and shall provide financial incentives for the SEU to surpass the performance benchmarks set forth in the SEU contract.  The SEU contract shall also provide financial penalties to be applied to the SEU if the SEU fails to meet the required performance benchmarks.”


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August 9, 2013


Energy Efficiency as a Resource
There is currently no policy in place that treats energy efficiency as a resource.
For more information on energy efficiency as a resource, click here.

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October 16, 2010


Evaluation, Measurement & Verification
  • Cost-effectiveness test(s) used: SCT
  • Uses a deemed savings database: no

Evaluation of ratepayer-funded energy efficiency programs in the District of Columbia is mandated by legislation (Clean and Affordable Energy Act of 2008). Evaluations are administered the District Department of the Environment using an independent contractor. The results of the evaluation, measurement and verification activities conducted for the DC SEU's FY 2012 portfolio of programs show that the program portfolio is cost effective, with a ratio of 2.04. There are no specific legal requirements for these evaluations. Evaluations are conducted for the portfolio of programs administered by the DCSEU. The District of Columbia relies on the Social Cost Test (SCT) and considers it to be its primary cost-effectiveness test. The rules for benefit-cost tests are stated in the Clean and Affordable Energy Act of 2008. These benefit-cost tests are required for overall portfolio screening.


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August 9, 2013